Correlation Between Jhancock Disciplined and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined and Oakmark International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jhancock Disciplined and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Disciplined Value and Oakmark International Fund, you can compare the effects of market volatilities on Jhancock Disciplined and Oakmark International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jhancock Disciplined with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Oakmark International.
Diversification Opportunities for Jhancock Disciplined and Oakmark International
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jhancock and Oakmark is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Jhancock Disciplined is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jhancock Disciplined Value are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Oakmark International go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Oakmark International
Assuming the 90 days horizon Jhancock Disciplined Value is expected to generate 0.83 times more return on investment than Oakmark International. However, Jhancock Disciplined Value is 1.21 times less risky than Oakmark International. It trades about 0.15 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.01 per unit of risk. If you would invest 2,100 in Jhancock Disciplined Value on September 2, 2024 and sell it today you would earn a total of 659.00 from holding Jhancock Disciplined Value or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. Oakmark International Fund
Performance |
| Timeline |
| Jhancock Disciplined |
| Oakmark International |
Jhancock Disciplined and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and Oakmark International
The main advantage of trading using opposite Jhancock Disciplined and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined position performs unexpectedly, Oakmark International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oakmark International will offset losses from the drop in Oakmark International's long position.| Jhancock Disciplined vs. Davenport Small Cap | Jhancock Disciplined vs. Blackrock Sm Cap | Jhancock Disciplined vs. The Gabelli Small | Jhancock Disciplined vs. Principal Lifetime Hybrid |
| Oakmark International vs. Oakmark Fund Investor | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark International Small | Oakmark International vs. Oakmark Global Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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